Wednesday, February 06, 2019

India Macro Charts

NO ease of doing business in India

List of issues Indian bureaucracy creates is amazing. Hope we are not creating too many barriers to drastically reduce the long term fund flows to India. This article highlights exactly the points which I am concerned about for India

Issues which irritate foreign players
  • ArcelorMittal on Essar Steel vs Indian steel players who doesn't want Mittal in India and playing all games that they can to keep him away
  • Vodafone and Cairn on tax disputes and these are not small change
  • E-Commerce rules impacting Amazon / Walmart-Flipkart
  • Phased Manufacturing Programme (PMP) for manufacturing - Actually this was long due

India keeps foreign firms on tenterhooks

Still, no-one should make the mistake of thinking India is the only investment destination left globally. Look at Japanese investment, for instance. Indian diplomats and others who've dealt with the Japanese testify to the fact executives there are more comfortable and feel greater cultural affinity with South-East Asia and the CMLV (Cambodia, Myanmar, Laos and Vietnam) countries than India. Also, there are estimated to be 30,000 Japanese companies operating in China compared to just 1,400 in India. With the glass still half-full or half-empty for foreign investors, depending on the way they look at India, there's a vital need for the government to tread sensitively and judiciously in implementing rules. This country not only faces competition from other Asian economies, and increasingly east Africa too. And in developed markets, India risks being squeezed in a race with automation. That's shaping up to be a whole other boondoggle for all labour-intensive economies.

Ambit on BFSI Sector

Ambit's BFSI Team is the best. Pankaj Agarwal understanding of the sector is unparalleled.

Tuesday, February 05, 2019

Investors Sector Positioning - Covers FPIs, DFI and DMFs (MS Report)

Whole world has bought Axis Bank and ICICI Bank.
Never seen such a common consensus buy call from research houses.

EV Charging Infra: Guidelines and Standards (MS Report)

As per MS report, the EV Charging Infra guidelines are comprehensive. Challenges include payback period for investments and possibly land acquisition

Tuesday, January 29, 2019

Interesting Article I read today

Green energy companies see red due to cancelled tenders, low tariffs (ET Article)
Stupid bureaucrats making a mess of the sector.

"But other countries are also competing hard to attract capital and we fear that the government is sending a negative signal to investors. International capital can be fickle and once turned away, it would be extremely hard to attract these investors back to India," Rustagi added.
Coal shipments at India's 12 major ports up 16 pc to 121 MT in Apr-Dec (ET Article)
Import growth could be higher if the power capacity addition does not keep up with power demand growth

Coal shipments, comprising thermal/steam and coking coal, were up 17 per cent and 15 per cent respectively in the April-December period of the ongoing fiscal. 

Your Davos Cheat Sheet (Source)
Good & brief cheat sheet on Davos...don't need to read any other article
The World Economic Forum has traditionally brought together the world's top political and business leaders. But this year, the political leaders were largely absent — remaining in their home countries to handle crises largely of their own making (President Trump with the shutdown and Prime Minister Theresa May with Brexit).
The surprise guest this year was Tim Cook, Apple's chief executive, making his first appearance; it may be an indication of Apple's increasing dependence on foreign markets for growth.
A Chinese chief executive described his country's economy as "ugly" — he used that world repeatedly — suggesting that the underlying foundation there was more fragile than most economists acknowledge. That could lead to weakness in China spreading to the rest of the world. And the general sense is that while the U.S. and China may reach a trade d├ętente, we might be headed for a decades-long economic cold war.


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